14 Property Taxes/Liens/Environmental

Question 0

Encumbrance

Answer 0

A charge, claim or liability against a property. Liens, easements, deed restrictions or encroachments could lessen the value or use of a property.

Question 1

Lien

Answer 1

A charge or claim against a property as security for a debt or obligation. Can be voluntary or involuntary. A specific lien attaches to one property and a general lien attaches to all your properties. To be effective they need to be recorded at the county.

Question 2

Lien Facts

Answer 2

Property Taxes are always paid first.
Most liens are paid in the order in which they are recorded.
Liens run with the land and binds all successive owners.

Question 3

Subordination

Answer 3

The changing of the lien order or where a junior lien holder agrees to stay in a lower position.

Question 4

Wrongful Liens

Answer 4

An intentional, fraudulent lien put on a property. The penalty is $5,000 or three times the actual damages plus attorney fees. Unintentional wrongful lien is $1,000 or triple damages after 20 days notice to remove.

Question 5

Real Property Taxes

Answer 5

Real property taxes are based on the assessed value of the property. AD VALOREM

Question 6

AD VALOREM

Answer 6

At assessed value.

Question 7

Real Property Taxes are

Answer 7

Specific
Statutory
Superior
Involuntary
Unrecorded

Question 8

Special Assessments

Answer 8

Improvements performed on your property such as installing street lights, putting in sewers, sidewalks. Special assessments would be second in line behind property taxes.

Question 9

Arizona Property Tax Foreclosure

Answer 9

16% interest
Tax foreclosure sale every February
Winning bidder receives certificate of purchase
3 years redemption period
Treasurers deed

Question 10

Other Liens

Answer 10

Mortgage liens
Deed of trust liens
Mechanics liens
IRS liens
Judgement liens

Question 11

Non Recourse State

Answer 11

If you default on a mortgage, the lenders only option is to take the property back. They cannot go after anything else.

Question 12

Mechanics Lien

Answer 12

A statutory lien created in favor of contractors, laborers, and materialmen who performed work or furnished materials in connection with the erection or repair of a building or structure.

20 day preliminary notice when work starts. Without it you can’t file.
120 days - notice of lien must be recorded. Includes 20 day waiting period after notice of completion.
6 months - from when the lien is recorded, you have 6 mos to file lawsuit. No filing in 6 months lien can disappear.

Question 13

Mortgage and Deed of Trust Liens

Answer 13

Creates a lien on the property when a lender makes a loan. Both specific and voluntary.

Question 14

IRS Liens

Answer 14

Involuntary, statutory and general liens that result from a person not paying their taxes. Take priority the date of recording.

Question 15

Judgement Liens

Answer 15

Statutory, involuntary, and general lien on real and personal property created as a result of a lawsuit. Enforced via writ of execution and the ultimate sale of the property.

Question 16

Asbestos

Answer 16

Banned in 1978. Highly friable. Encapsulation is preferred over removal.

Question 17

Lead based Paint

Answer 17

Banned in 1978. Not mandatory for homeowners to test for presence.

Question 18

Radon Gas

Answer 18

Naturally occurring colorless, odorless gas produced from the decay of natural radioactive minerals in the ground found in basements and cracks in foundations. Known to cause lung cancer.

Question 19

Mold

Answer 19

Moisture and oxygen give you mold.

Question 20

Electromagnetic Fields

Answer 20

EMF’s are energy fields found near power lines, homes near appliances, and in offices near equipment that has electric motors.

Question 21

Groundwater Contamination

Answer 21

Below earths surface and can be contaminated from underground storage tanks, septic, storm drains, other sources. Can effect private wells and public water supply.

Question 22

Landfills

Answer 22

Used as disposal sites for garbage. When full the cap 2-4 feet of soil on top and plant vegetation.

Question 23

Superfund Amendments and Reauthorization Act

Answer 23

SARA. Act amended CIRCLA in 1986 to define cleanup standards and expand liability for cleanup. Also created the innocent landowner immunity act.

Question 24

Environmental Protection Agency

Answer 24

EPA. Federal agency started in 1970 to protect human health and environment. Enforces all environmental laws federally.

Question 25

Comprehensive Environmental Response Compensation and Liability Act

Answer 25

CERCLA. Known as Superfund started in 1980. Makes owners, lenders, occupants and operators liable for correcting environmental problems discovered on a property.

Question 26

Environmental Site Assessments

Answer 26

Often requested by lenders buyers and developers to determine if a site can possibly have environmental hazards. First inspection requested is the PHASE 1 INSPECTION.

Question 27

Arizona Department of Environmental Quality

Answer 27

ADEQ. Responsible for implementing CERCLA in Arizona.

Question 28

Arizona Department of Water Resources

Answer 28

Groundwater rights are regulated by the ADWR. Arizona subscribes to the doctrine of prior appropriation for water rights. First in time, first in right. The one who has the permit get to use water first.

Question 29

Water Supply

Answer 29

Adequate water supply - INA’s
Assured water supply - AMA’s
Exempt Domestic Well - pumps max of 35 gal per minute. Except from disclosure.

Question 30

Water Grandfathered Rights

Answer 30

Irrigation grandfathered rights - water rights run with the land.
Type 1 non irrigation - retired from irrigation, now used for other.
Type 2 non irrigation - most flexible, can be sold separately.

Question 31

Assured Water Supply

Answer 31

Developer must demonstrate that:
Water is available to sustain development for 100 years.
Proposed use is consistent with management plan.
Has financial capacity to deliver water and treat it.